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SNB's Jordan says base case is that Greece remains in euro

Thu, Jun 25, 2015 - 6:17 PM

[LAUSANNE] Switzerland's central bank is watching the debt crisis in Greece very closely but its base case is still that the country stays in the eurozone, the Swiss National Bank's chairman said on Thursday.

"As you know it's a serious problem in the world economy right now... Our base case is that Greece remains in the euro," SNB Chairman Thomas Jordan said at an event organised by the Federation of the Swiss watch industry in Lausanne, Switzerland.

When asked when he thought the US central bank might raise interest rates, Mr Jordan said he hoped they would do so as soon as possible.

Mr Jordan also said the duration of the SNB's negative interest rate policy, implemented in January to ward off inflows into the safe-haven franc, would depend on the international situation.

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Earlier, Mr Jordan said the Swiss franc is considerably overvalued and the central bank will continue to keep a lid on it by intervening in currency markets and maintaining negative benchmark interest rates and a charge on franc deposits.